Consol aims to raise R3.5bn in IPO

Johannesburg –  Glass packaging manufacturer Consol Holdings Limited on Monday said its initial share offer price would be between R1.50 and R6.50 per share when it lists on the JSE on May 4.

A total of 761 million ordinary shares, or 34.2% of all the shares it intends to issue, would be traded though private placement, raising up to R3bn.

Consol said it would announce the results of the private placement on April 30. 

The gross offer proceeds, including the exercise of the over-allotment option, is expected to amount to R3.5bn on the listing date.

In a pre-listing statement, Consol stated that the listing of all ordinary shares had been granted by the JSE in the “industrial, containers and packaging” sector of the main board of the bourse, under the abbreviated name “Consol”.

The upcoming listing marks the Johannesburg-based firm’s return to the JSE. 

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The company delisted in 2007 when it was taken private by a consortium of private equity investors, led by Brait Private Equity and including Old Mutual Private Equity, Sanlam Private Equity, HarbourVest Partners and the management of Consol.

The net proceeds from the issue of the offer shares receivable by Consol are estimated at R2.914m. The group said the proceeds of the listing would be used to strengthen and deleverage its balance sheet.

Consol has four glass manufacturing facilities in South Africa, and operates two facilities in Kenya and Nigeria.